The company owns various subsidiary companies of which all of them have names starting with the letter T such as the T-Home; a Legacy Telephone, Broadband and IPTV Service Provider, the T-Online; an Internet Service Provider, the T-Mobile; A Mobile Network Operator, and the T-Systems; A business division, focused on providing services to public and business sector customers. Recently the company has unveiled a new structural group through the merging of the two organizational units T-Com and T-Online into the Broadband/Fixed Network (BBFN) strategic business area. This Broadband/Fixed Network business area is one of the largest providers in Europe with approximately over 9 million broadband lines, 40 million narrowband lines and 14 million registered Internet customers. The company also holds substantial shares in other telecom companies especially within the region including Central European subsidiaries such as Magyar Telekom in Hungary, T-Hrvatski Telekom in Croatia, and Slovak Telekom in Slovakia. Again these subsidiary companies some also hold shares in subsidiary companies such as maygar Telkom holds various shares in T-Crnogorski Telekom in Montenegro, and Makedonski Telekom in Macedonia; all of which have also been rebranded and included under the T-Com/T-Home umbrella. In the year 2009, the orange Telekom Company and the T-Mobile parent Deutsche Telekom announced of their involvement in advance negotiations to merge their UK operations to develop the largest mobile network in Britain that is now known as everything everywhere (EE) (Benoit 2012). The occurrence of such merging of large companies is a step by the companies to better secure the market such that they be having a better hand due to operating in large economies of scale. Deutsche Telekom has an exceptionally large and broad market share in the world. It is positioned in over 50 countries in Africa, Asia, Europe and America with the heaviest investment being in the United States and throughout Europe. It has a share market of approximately with almost ten million subscribers in Europe and a total of 50 million customers in Europe, Asia, and the United States. Having started in Germany as public owned the company became privatized in 1996 and has extended operations to a global level. Now the largest telecommunication company in the EU it is finding it difficult to expand its regional operations due to increased competition as a result of moving from regional to global markets and pricing pressures originating from increasingly restrictive EU sector specific legislation. The company generated a net income of €80 million on revenues of €64.6 billion in the year 2009. In relation to the previous year, 2008, this is a representation of a 76.5% drop in net income and a 4.8% increase in revenues when the company earned €340 million on €61.7 billion in revenue (Benoit 2012). The company is experiencing particularly high market penetration rates in Western Europe and the United States. The company is also serving market penetration of various emerging markets in countries such as such as Brazil, India, China, South Africa and Argentina in Africa, Asia and South America. Such markets are now just opening up and adopting such technologies thus providing good avenues to sink investments first for companies to have a greater chance at dominating the consumer markets. The company faces stiff competition from some of the various capital
Name: Instructor: Course: Date: Pricing at Deutsche Telekom Deutsche Telekom is a German telecommunications company with its headquarters in Bonn, North Rhine-Westphalia, and Germany. In Europe, this is the largest telecommunications company, and it was formed in 1996 in the privatization of the former state-owned monopoly Deutsche Bundespost…
This paper will discuss different economic approaches for Aslan communications’ price setting, and identify factors that may limit the firm’s choice in pricing decisions. The economic approaches consider elements such as demand, elasticity, cost, oligopolistic behaviour, market structure, product differentiation, and innovation management while setting price for a product.
INTRODUCTION Transfer price mechanism is process that provides opportunity to attach prices of goods and services of two divisions of same company. It is the process where the negotiated price is arrived between two sections of similar divisions (Robertson , 1996, 2).
The choice of a pricing method to be adopted largely depends on the nature of the product and the targeted market structure and composition. The available methods include the cost based method which involves the price determination based on the cost of production.
Restaurants frequently offer kids free nights, and senior citizen discounts often get ‘Early bird specials.’ ‘Channel pricing’ is the practice of charging separate prices for an identical product, as determined by the channel through which it is sold.
..” (Commissioner Neelie Kroes, Speech delivered at Fordham on 23 September 2005) Discuss this statement, explaining how far you agree that it is an accurate reflection of the purpose and application of Article 102. Article 102 – TFEU – “(Treaty on the Functioning of the European Union)” - Competition Introduction Any misuse by one or more business enterprises of its principal position within major part of EU internal market or whole internal market of EU “shall be barred as contrary within the domestic market as far as it may impact commerce between Member Nations.” Such misuse may, especially, include the following: Imposing unfair selling or purchase prices either indirectly
The agony is attributed to the fact that there are numerous variables and factors to be considered before arriving at a pricing decision. The underlying five articles seek to substantiate the efficacy of certain practical models used in actual context as tools for making pricing decisions.
This method of marketing strategy aim is to lower the price of new products or services thus making the customers to be attracted to the firm. Lowering of prices makes competition stiff in the market and this makes rivals to look for other alternatives to compete with the firm that lowers the prices of products and services.
There are many factors that can be used to determine the price of a commodity which all depends on the most prevalent factor that is used in a marketing system. Price is the quantity payment that is given in exchange for something. Through this may have a different social meaning, it is used for monetary value in economics.